This work is divided in two major parts. The first, explores the main features of recent developments of more elaborated theories to understand the functioning of modern economies regarding the close interaction of the nominal stock of money (and how the changes in the money stock are determined) with the rest of the economy, particularly on the economy’s real variables. The second, emphasizes on the understanding of how the Colombian economy works, their past developments and reforms, its structural changes and recent challenges that the economy face to boost sustained growth while reducing income inequality and poverty.